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Significance
EU leaders accept that the measures will undercut EU growth and increase the risks of recession. They have less appetite than Washington for further sanctions, reflecting their greater exposure to Russia. The refusal of Germany and the Netherlands to back a US proposal to ban Russian energy imports underscores this.
Impacts
EU firms will try to diversify their commodity supplies away from Russia, not only oil and gas but also metals used in industrial alloys.
More states will join the EU's gas storage coordination and joint gas reserves purchases the European Commission initiated late last year.
An extended conflict would hike the threat to vital Ukrainian and Russian grain supplies for states in the Middle East and North Africa.
Keywords:
EU,
EUR,
INT,
Russia,
France,
Germany,
Ukraine,
INTERNATIONAL,
economy,
border conflict,
energy,
foreign investment,
foreign policy,
foreign trade,
gas,
investment,
oil,
international relations,
banking,
finance,
invasion,
sanctions,
war,
Fossil fuels,
Banks,
Capital markets
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2022
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